-A New Demographic Era:
Past- population might increase significantly then fall due to crop failures or disease
Population Growth- 1730 to 1800 Europe’s population grew by 50%
due to falling death rates
-Causes: increase in average temperature better, stable food supply
-Profit Inflation: The Movement of Prices:
-as population grew so did the economy
-began around 1730: gradual inflation dominated the period “Profit Inflation”
The Impact of Inflation- did not affect all products, all sectors of the economy or society generally, benefited the rich: merchants/ manufacturers sold goods at higher price and paid workers relatively less and hurt the poor: wages barely rose, basic food for poor prices rose
-Protoindustrialization: type of economic development that occurred before the factory system where the volume of rural manufacturing increased under the putting- out system strengthened marketing networks and generated additional revenue for poor rural families
-In heavily populated countries like England, France, or the Netherlands, so many people rural people could not earn a living in agriculture
Putting-out system: merchants distributed raw materials to rural households make cloth
The New Shape of Industry:
-Toward a New Economic Order:
Industrialization required innovations in technology
Impediments to Economic Innovation-
-small size of European markets that were isolated from one another for various reasons (physical barriers laws, political frontiers, etc.)
-skewed demand due to generally small aristocracy economy organized to serve them no incentive to manufacture many inexpensive goods
-governments also restricted innovation: by practices to benefit themselves
Adam Smith- Scottish philosopher, wrote An Inquiry into the Nature and Causes of the Wealth of Nation, founding father of laissez-faire theory- Let individuals freely pursue their own economic interests free individual enterprise would create more wealth than any artificial regulation could encourage
-The Roots of Economic Transformation in England:
-England first to develop a social structure that supported innovation and economic growth mostly due to geography
-A New Demographic Era:
Past- population might increase significantly then fall due to crop failures or disease
Population Growth- 1730 to 1800 Europe’s population grew by 50%
due to falling death rates
-Causes: increase in average temperature better, stable food supply
-Profit Inflation: The Movement of Prices:
-as population grew so did the economy
-began around 1730: gradual inflation dominated the period “Profit Inflation”
The Impact of Inflation- did not affect all products, all sectors of the economy or society generally, benefited the rich: merchants/ manufacturers sold goods at higher price and paid workers relatively less and hurt the poor: wages barely rose, basic food for poor prices rose
-Protoindustrialization: type of economic development that occurred before the factory system where the volume of rural manufacturing increased under the putting- out system strengthened marketing networks and generated additional revenue for poor rural families
-In heavily populated countries like England, France, or the Netherlands, so many people rural people could not earn a living in agriculture
Putting-out system: merchants distributed raw materials to rural households make cloth
The New Shape of Industry:
-Toward a New Economic Order:
Industrialization required innovations in technology
Impediments to Economic Innovation-
-small size of European markets that were isolated from one another for various reasons (physical barriers laws, political frontiers, etc.)
-skewed demand due to generally small aristocracy economy organized to serve them no incentive to manufacture many inexpensive goods
-governments also restricted innovation: by practices to benefit themselves
Adam Smith- Scottish philosopher, wrote An Inquiry into the Nature and Causes of the Wealth of Nation, founding father of laissez-faire theory- Let individuals freely pursue their own economic interests free individual enterprise would create more wealth than any artificial regulation could encourage
-The Roots of Economic Transformation in England:
-England first to develop a social structure that supported innovation and economic growth mostly due to geography
wealth of nation